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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: jacin who wrote (40969)1/15/2001 6:02:49 PM
From: Square_Dealings  Read Replies (2) of 42787
 
I agree,

I think the Fed is playing the stock market. Mutual fund redemptions were a record $13 Bln on the first day of trading that week. There was a major confidence crisis in the market and you could feel things starting to go over the cliff at the very moment that the Fed announced the surprise 50 bp cut.

Based on the action so far I would expect that if the market pulls back significantly the Fed will cut at the next meeting or even before. If the market holds up or even rises into the meeting the Fed will not cut and then the market will go down on that.

M.
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